Final answer:
To assess the viability of a new development project, a borrower must provide a thorough feasibility analysis to the lender, detailing income sources, past credit history, and collateral. A cosigner may also be required to secure the loan.
Step-by-step explanation:
In assessing the viability of a new development project, a borrower must provide comprehensive information to the lender. This includes detailed income sources, a credit history review to evaluate past borrowing behavior, and potential security for the loan, such as collateral (property or equipment). Additionally, it's not uncommon for lenders to require a cosigner who can legally pledge to repay the loan if the borrower defaults. All of these factors help the lender to mitigate the risks associated with imperfect information about the borrower's ability to repay the loan.
The information provided in a feasibility analysis must therefore convincingly demonstrate the project's potential for success and the borrower's financial reliability. Since this is crucial for the lender's decision on whether to finance the project, the borrower should ensure that the analysis is both accurate and complete.